IBAN Accounts for everyone with a passport!
RBFC - Royal Business Finance Corp.
Turner Little - Company Formation Agents & Banking Intermediaries.Chat to a member of our sales team.
Offshore Company Formation and Management Services
Mentor Group

How can I own an offshore business in a tax heaven as a minor? I’m 16.

umair

New member
Hey guys!

Im looking to start a small business with a friend who is well over the age of 18. He’ll be my business partner.

However, I’m only 16 and I want to legally be part of this company and be able to make decisions as the idea and capital is all mine.
Please guide me on how this is possible and how I can register a business, a partnership, on my name.

Thank you, everyone.
 

Admin

Forum Moderator
Staff member
Elite Member
You can simply get a Power of Attorney from your parrents to be able to sign on their behalf or have your parents sign where you have to sign, that's the only possible way of doing it as far as I know.
 

mange38

Entrepreneur
You could control it through a UK limited since the minimum age to be a director of a UK company is 16. Most offshore jurisdictions allow corporate directors.

The shareholder could be one of your parents but you need to figure out the tax stuff.
 

avalanche

Entrepreneur
You could control it through a UK limited since the minimum age to be a director of a UK company is 16. Most offshore jurisdictions allow corporate directors.

The shareholder could be one of your parents but you need to figure out the tax stuff.
By the way, how would you take dividends from such UK LTD company? Isnt tax going to be insane?
 

Admin

Forum Moderator
Staff member
Elite Member
The UK Ltd would be dormant, it would just be used to control the other company.
So you think it does not have to pay tax in that case?
 

dragodrago

New member
As mentioned above, a UK limited company work well in your case. Use it to hold shares in the company you’re investing in.

If you need to receive dividend from the new venture or any payment (which I don’t think you should), you can relatively easily open a less reputable EMI account.

I know of quite a few EMIs that do open accounts for companies solely owned and managed by minors. I am not affiliated with them, but feel free to PM.

I’d also add that many states in the US, e.g. New Mexico, Wyoming, does not have age restrictions. Obtaining an EIN does not have age issues either. Problem will be with US banking.

Few years ago, Euro Pacific Bank opens account for minor signatories. They don’t do that anymore.

Anyway, good luck with your new ventures!
 

Cetme308win

Entrepreneur
First of all you will need to talk with some banks about the business even before of incorporating the company....
Talk with Europacific bank,Alsalam bank (Seychelles) and try with EMIs like transferwise too....
You will need to know first if they would accept you as a customer and under what requisites you will be able to.open an account there....
The problem is not incorporating a business but opening a bank account too....
I know how fucked up it's doing business when u are a minor..... When I started reading this forum I was your age as well and some time later I registered an account,I invite you to read the threads here and start learning about ;)
In 2 years you won't have any problem to open banks account and do business worldwide :)
Good luck in your projects!
 

Cetme308win

Entrepreneur
Btw there are some good threads here that would be useful for u!



 

umair

New member
Thank you everyone for your recommendations and help. I have now registered my business in Wyoming, a LLC. I was allowed to be an LLC member at the age of 16 and the process was very simple and swift. Opening an LLC in Delaware, New Mexico and Nevada is also very simple; they all allow minors to be LLC members. However, what I really struggled with was opening up a personal and business bank account. I was not able to find a bank best suited for our business, so we will be opening a business account with TransferWise today. However, TransferWise will not let me open a personal account as I'm not 18 yet. Do you guys have any recommendations for me opening a personal account in a bank, preferably and online one?

Thank you for all your answers. (@Cetme308win, your advice was spot on, and that's why I talked to banks before incorporating. TransferWise will allow a business account, but not a personal one on my name)
 

dragodrago

New member
Thank you everyone for your recommendations and help. I have now registered my business in Wyoming, a LLC. I was allowed to be an LLC member at the age of 16 and the process was very simple and swift. Opening an LLC in Delaware, New Mexico and Nevada is also very simple; they all allow minors to be LLC members. However, what I really struggled with was opening up a personal and business bank account. I was not able to find a bank best suited for our business, so we will be opening a business account with TransferWise today. However, TransferWise will not let me open a personal account as I'm not 18 yet. Do you guys have any recommendations for me opening a personal account in a bank, preferably and online one?

Thank you for all your answers. (@Cetme308win, your advice was spot on, and that's why I talked to banks before incorporating. TransferWise will allow a business account, but not a personal one on my name)
Opening a TransferWise account for your Wyoming LLC will require you to obtain an EIN and appoint an adult officer or employee, who will then open the account on behalf of the company.

If that adult is a US person with an SSN, he/she might even be able to open an account at big banks like Bank of America physically at a branch.

AFAIK no bank/EMI is the US will allow a minor to open an account on its own. Parental consent is required. If you just need a personal account anywhere, look into Monzo and Starling in the UK, both has an age limit of 16. The Business TransferWise account can them pay or receive money (in pounds) to your account.

That’s also the reason why I suggest opening a UK limited company in my previous post. You can do everything, including formation, accounting and banking, on your own. The banks/EMIs that allow companies own by minors don’t work with US persons or entities unfortunately.
 
Last edited:

umair

New member
Opening a TransferWise account for your Wyoming LLC will require you to obtain an EIN and appoint an adult officer or employee, who will then open the account on behalf of the company.

If that adult is a US person with an SSN, he/she might even be able to open an account at big banks like Bank of America physically at a branch.

AFAIK no bank/EMI is the US will allow a minor to open an account on its own. Parental consent is required. If you just need a personal account anywhere, look into Monzo and Starling in the UK, both has an age limit of 16. The Business TransferWise account can them pay or receive money (in pounds) to your account.

That’s also the reason why I suggest opening a UK limited company in my previous post. You can do everything, including formation, accounting and banking, on your own. The banks/EMIs that allow companies own by minors don’t work with US persons or entities unfortunately.
I currently do not have an EIN, so I contacted TransferWise two days ago and they asked me to enter 11111111 instead of the EIN number to activate the account. However, this might lead them to asking me for additional documents as proof that the business is actually registered.

As you suggested, I visited both Starling and Monzo's websites, but the issue is that I need to be a UK resident to open up a personal account with them, which I am not. So if you have any other recommendations of EINs/Banks for me to open a personal account, do let me know.

Thank you again for your wonderful suggestions. They truly help a lot. Now I realize why I should've opened up a UK limited company.
 

dragodrago

New member
I currently do not have an EIN, so I contacted TransferWise two days ago and they asked me to enter 11111111 instead of the EIN number to activate the account. However, this might lead them to asking me for additional documents as proof that the business is actually registered.

As you suggested, I visited both Starling and Monzo's websites, but the issue is that I need to be a UK resident to open up a personal account with them, which I am not. So if you have any other recommendations of EINs/Banks for me to open a personal account, do let me know.

Thank you again for your wonderful suggestions. They truly help a lot. Now I realize why I should've opened up a UK limited company.
I advise against putting in an incorrect EIN. Obtaining an EIN is very easy, just call the IRS or mail in the form. On the form, you will be asked to supply a SSN. I don’t know where you’re from, but if you’re not from the US and doesn’t have a SSN, write the word “FOREIGN” in place of the SSN.

What I am most concerned about your setup is foreign reporting. If you’re not a US resident, you need to properly file 1040NR, 1120 and 5472 every year with IRS. There is a $25k fine for non compliance.

Regarding personal bank account, I think the best choice is to open one in your home country. Might need parental approval. It should work seamlessly with your TransferWise business account, unless your country have capital control.

Monzo doesn’t check your address so technically you can get away with using a rented address.

I was a teenage entrepreneur myself, so it’s an area that I always look into till this day, hope it helped :)
 

umair

New member
I advise against putting in an incorrect EIN. Obtaining an EIN is very easy, just call the IRS or mail in the form. On the form, you will be asked to supply a SSN. I don’t know where you’re from, but if you’re not from the US and doesn’t have a SSN, write the word “FOREIGN” in place of the SSN.

What I am most concerned about your setup is foreign reporting. If you’re not a US resident, you need to properly file 1040NR, 1120 and 5472 every year with IRS. There is a $25k fine for non compliance.

Regarding personal bank account, I think the best choice is to open one in your home country. Might need parental approval. It should work seamlessly with your TransferWise business account, unless your country have capital control.

Monzo doesn’t check your address so technically you can get away with using a rented address.

I was a teenage entrepreneur myself, so it’s an area that I always look into till this day, hope it helped :)
Ok, I'll be applying for an EIN.

However, TransferWise just rejected our account opening, saying that I can not have any control of the business account since I am not 18 years of age yet. Only my business partner can have access to that account. Even though I completely trust my partner, we would have appreciated if we both had equal access to the business founds. I am stuck now and it seems impossible to have any control of my business funds. If you still have ideas to bypass this, I would really appreciate the help.

As you suggested, I'll look into opening a personal account in my home country.

Regarding the filing of 1040NR, 112 and 5472, I will make sure they are filed, and I am also scheduled to talk to tax consultants in the US.

Thank you once again!
 
Mentor Group
Mentor Group
Top